In March 2016, producer costs in construction rose slightly (+0.3%). Prices increased
by 0.3% in construction of buildings, and in civil engineering and by 0.4% in specialised
construction works.

Over a year, producer costs in construction continued to decline (−0.5% like the previous
month) mostly driven by a significant fall in civil engineering (−3.4%). They decreased
more moderately in construction of buildings (−0.4%). They rose slightly in specialised
construction works (+0.2%).

tableau tablo1 – Variations in producer cost indices for construction

In %

Variations in producer cost indices for construction

NAF

Heading

Weights (in %)

Mar. 16/ Feb. 16

Mar. 16 / Mar. 15

F

Construction

100.0

+0.3

-0.5

41.2

Construction of buildings

10.1

+0.3

-0.4

42

Civil engineering

16.2

+0.3

-3.4

43

Specialised construction works

73.7

+0.4

+0.2

43BT

Buildings

64.2

+0.3

+0.5

43BTC

New buildings

24.6

+0.3

-0.3

43BTR

Existing buildings

39.6

+0.4

+1.0

43TP

Specialised works for civil engineering

9.5

+0.4

-2.2

BT

Buildings (41.2 + 43BT)

74.3

+0.4

+0.5

TP

Public works (42 + 43TP)

25.7

+0.4

-2.9

Source: INSEE

tableau tablo2 – Items of producer cost indices for construction

In %

Items of producer cost indices for construction

Costs

items

Q1 16 / Q4 15

Mar. 16/ Feb. 16

Mar. 16 / Mar. 15

Equipment

Buildings

-1.6

0.0

+1.6

Public works

-0.4

+0.1

-0.2

Labour

Labour costs in construction

+1.5

///

+2.6

Energy

Buildings

-5.4

+3.4

-12.9

Public works

-5.0

+4.2

-13.8

Materials

Construction of buildings

-1.8

-0.1

-4.2

Existing buildings

-0.9

+0.1

-2.0

Civil engineering

-5.0

0.0

-10.1

Specialised works for civil engineering

-0.5

-0.6

-1.8

Services

Construction

0.0

+0.1

0.0

Transport

Buildings

-0.9

+0.6

-2.4

Public works

0.0

0.0

+1.4

///: non published estimation

Source: INSEE

graphique GRCoutUK – Production costs in construction

Source: INSEE

The fall in prices of materials costs eased

In March 2016, material costs were stable in civil engineering, after an uninterrupted
decrease since July 2015; over a year, however they fell down by 10.1%.

Likewise, material costs almost stabilised in construction of buildings (−0.1% after
−0.5%) and in renovation of existing buildings (+0.1% after −0.4%). On the other hand,
in specialised works for civil engineering, these costs still declined (−0.6%, like
in the previous month), due to the fall in prices of iron tubes (−3.7%) and of transformed
flat glass for building use (−1.6%).

graphique GRMUK – Costs of materials

Source: INSEE

Equipment costs were flat

In March 2016, equipment costs were virtually stable in civil engineering (+0.1% after
0.0%).

They were stable in building construction (+0.0% after +0.1%) with unchanged prices
of rental of civil engineering machinery and equipment.

graphique GRKUK – Equipment cost

Source: INSEE

graphique GRtravailUK – Labour cost in construction

Source: INSEE

Energy costs recovered

In March 2016, the costs of energy bounced back in building construction (+3.4% after
−0.9% in February) due to the rise in prices of road diesel fuel (+3.4%).

In public works, they recovered even more (+4.2%), the increase in the price of non-road
diesel (+9.2%) being stronger.

graphique GRenergie – Energy cost

Source: INSEE

tableau revision – Measure of variations' revisions

(in percentage points)

Measure of variations' revisions

Dec. 15

Jan. 16

Feb. 16

F

Construction

−0.1

−0.1

0.3

41.2

Construction of buildings

−0.1

///

0.2

42

Civil engineering

−0.1

///

0.2

43

Specialised construction works

−0.1

−0.1

0.2

How to read it: producer cost variation for construction in February 2016 published
in May 2016 has been updated from −0.2% to +0.1%, that is to say an upward revision
by 0.3 points.